Sharewatch: ITV Climbs Following Positive Results
ITV enjoyed a good day’s trading yesterday, riding on the back of increased revenue targets and well received news that a second digital channel, ITV3, will be launched by the end of the year.
The broadcasters saw its share price rise by 2.73% to 113p as it put paid to reports earlier this month that it faced a £100 million revenue shortfall due to advertisers negotiating more competitive deals. It announced that net advertising revenue for the six months to June 2004 was up 4.9%, with ITV1 up by 3.7% and ITV2 up 74% (see ITV Reveals Ambitious Multi-Channel Revenue Targets).
Elsewhere, newspaper giant Trinity Mirror remained unchanged yesterday, ahead of a positive pre-result statement issued this morning. The group expects advertising revenues to have increased by 5.1% year on year, citing benefits from increased cover prices which partially offset circulation declines.
Only two media stocks suffered a dip in share price yesterday, Capital Radio fared worst, losing 4.93% to sit at 472˝p. Speculation among traders of a merger with rival GWR had buoyed the company although this appears to have been short-lived.
US tobacco trading pushed the London equity market higher yesterday as the FTSE 100 inched up by 0.4% to close at 4,486.7. The FTSE 250 also finished up 0.4% at 6,188.2.
The closing prices of media company shares on Wednesday were:
